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US Online Grocery and Food Delivery Market Research Report to 2021: Ken Research
How Online Grocery is Positioned in the US?
The online grocery service industry in the US is at nascent stage. The market has witnessed a
robust growth over past six years. The online grocery industry has begun growing with the
increase in millennials using online grocery has been on the rise over the years as they prefer
paying more for the convenience and this behavior has led them to purchase grocery online
even with high transportation charges. Moreover, the startup trend in this industry has made a
positive impact on the market with various companies such as Shipt, Farmigo, Instacart and
others entering the market.
Online grocery market has grown from USD ~ million in 2011 to USD ~ million in 2016, growing
at a CAGR of ~% during the period. The increase in millennials using online grocery has been on
the rise over the years due to increase in the smart phone users and internet penetration.
Millennials prefer paying more for the convenience and this behavior has led them to purchase
grocery online even with high transportation charges.
Which Product Category Dominated Online Grocery Market?
Bread and dairy products dominated the product category in the US online grocery market with
revenue share of ~% of the total market in 2016 due to high usage of these products. Bread is
staple food of the US and therefore, the usage of bread is highest, which results in excessive
purchase of this product with the evolving online grocery, hence driving market for the
segment. Similarly, the consumption of processed dairy products including cheese, evaporated
and condensed milk and ice cream has inclined in the US in the recent years, which further
justifies the reason behind dominating share of the segment. Fruit and vegetables were
observed to hold second share in the market with revenue share of ~% in the total market.
Rising consumption of fruits especially in form of juices has been observed as the major factor
driving growth of the market. Both commercial and street wide juice vendors are observed to
order fruits through online mode. Other product category includes beverages, household
products, personal care and others.
Which Mode of Ordering is more popular in Online Grocery Market of the US?
Website as mode of ordering for online grocery shopping captured ~% revenue share in 2016
owing to the higher trust factor compared to mobile apps. The features such as comparability,
big screen and others surpass the mobile apps. Moreover, there is no access to personal
information of the customer while using websites and websites use less memory as compared
to apps. The consumers are observed to be more comfortable in purchasing grocery through
website mode, which further drives the market for the segment. ~% of the online shoppers in